Yellow Uber car in Moscow

A ridesharing company (also known as a transportation network company,[1] ride-hailing service; the vehicles are called app-taxis or e-taxis) is a company that, via websites and mobile apps, matches passengers with drivers of vehicles for hire that, unlike taxis, cannot legally be hailed from the street.

Ridesharing companies were founded after the proliferation of the Internet and mobile apps:[2] Uber was founded in 2009,[3][4] Ola Cabs was founded in 2010, Yandex Taxi was launched in 2011,[5] Sidecar was launched in 2011,[6] Lyft was launched in 2012,[7] DiDi was launched in 2012,[8] Careem began operations in 2012,[9] Bolt was founded in 2013,[10] and Free Now was founded in 2019.[11]

The legality of ridesharing companies by jurisdiction varies; in some areas they are considered to be illegal taxi operations, while in other areas, they are subject to regulations that can include requirements for driver background checks, fares, caps on the number of drivers in an area, insurance, licensing, and minimum wage.

Studies have shown that ridesharing companies have created net jobs[12] and improved the efficiency of drivers of vehicles for hire due to advanced algorithms that pair riders with drivers.[13]

Terminology: ridesharing vs. ridehailing

Although the term "ridesharing" is used by many international news sources,[14] in January 2015, the Associated Press Stylebook, the authority that sets many of the news industry's grammar and word use standards, officially adopted the term "ride-hailing" to describe the services offered by these companies, claiming that "ridesharing" doesn't accurately describe the services since not all rides are shared, and "ride-sourcing" only is accurate when drivers provide rides for income. While the Associated Press recommended the use of "ride-hailing" as a term, it noted that, unlike taxis, ridesharing companies cannot pick up street hails.[15][14]

The term "ride-sharing" has also been defined to refer to on-demand carpooling or shared transport, whereas "ride-hailing" has been defined as the hiring of a private driver for personal transportation.[16]

Criticism

Airports in California, such as the San Francisco International Airport, regulate where TNC vehicles may pick up, drop off, or wait for passengers.

Criticism from taxi companies and taxi drivers

Values of taxi medallions, transferable permits or licenses authorizing the holder to pick up passengers for hire, have declined in value significantly. In 2018, this led to failures by credit unions that lent money secured by taxi medallions[17] and suicides by taxi drivers.[18][19]

No lawsuit against Uber in which the plaintiffs were taxi companies has ended with a judgment in favor of the taxis. The only case that proceeded to trial, Anoush Cab, Inc. v. Uber Technologies, Inc., No. 19-2001 (1st Cir. 2021), which alleged that Uber caused asset devaluation by competing unfairly, resulted in a full verdict for Uber.[20]

Flywheel, the largest operator of taxis in San Francisco, sued Uber in 2016, alleging antitrust violations and predatory pricing.[21] In 2021, a federal judge threw out the bulk of the case and Uber settled the remainder of the case by integrating Flywheel taxis into its mobile app.[22]

In 2019, 6,000 taxi drivers, represented by law firm Maurice Blackburn, filed a lawsuit against Uber in Australia alleging illegal taxi operations and financial harm.[23][24][25] A trial is scheduled for March 2024.[26]

Driver classification under employment law

Unless otherwise required by law, ridesharing companies have classified drivers as independent contractors and not employees under employment law, arguing that they receive certain flexibilities not generally received by employees. This affects taxation, working time, employee benefits, unemployment benefits, and overtime benefits and has been challenged legally.[27]

Jurisdictions in which drivers must receive the classification of "employees" include the United Kingdom (after the case of Aslam v Uber BV which was decided by the Supreme Court of the United Kingdom),[28][29] Switzerland,[30] New Jersey,[31] and the Netherlands.[32][33] California Assembly Bill 5 (2019) was passed to force drivers to be classified as employees in California, although ridesharing companies received an exemption by 2020 California Proposition 22, a ballot initiative.[34] Ridesharing companies spent tens of millions of dollars on the campaign.[35][36]

Compliance with minimum wage laws

Some drivers earn rates that are below minimum wage; as a result, in some jurisdictions, laws were passed to guarantee drivers a minimum wage before and after expenses.[37]

Safety issues

Crimes have been committed by rideshare drivers[38] as well as by individuals posing as rideshare drivers who lure unsuspecting passengers to their vehicles by placing an emblem on their car or by claiming to be a passenger's expected driver.[39] The latter led to the murder of Samantha Josephson and the introduction of Sami’s Law. Ridesharing companies have been accused of not taking necessary measures to prevent sexual assault.[40][41] They have been fined by government agencies for violations in their background check processes.[42][43][44]

Ridesharing has also been criticized for encouraging or requiring phone use while driving. To accept a fare, some apps require drivers to tap their phone screen, usually within 15 seconds after receiving a notification, which is illegal in some jurisdictions since it could result in distracted driving.[45]

Ridesharing vehicles in many cities routinely obstruct bicycle lanes while picking up or dropping off passengers, a practice that endangers cyclists.[46][47][48]

Price fixing allegations

In the United States, drivers do not have any control over the fares they charge. A lawsuit filed in California, Gill et al v. Uber Technologies, Inc. et al, alleged that this is a violation of the Sherman Antitrust Act of 1890; the lawsuit was forced to arbitration.[49]

Insufficient accessibility

Ridesharing has been criticized for providing inadequate accessibility measures for disabled people, in violation of local laws.

In some areas, vehicle for hire companies are required by law to have a certain amount of wheelchair accessible vans (WAVs) in use. However, most drivers do not own a WAV, making it hard to comply with the laws.[50]

While ridesharing companies require drivers to transport service animals, drivers have been criticized for refusal to transport service animals, which, in the United States, is in violation of the Americans with Disabilities Act. In 2021, an arbitrator awarded $1.1 million to a visually impaired passenger who travels with a guide dog because she was denied rides 14 separate times.[51]

Bias against passengers in certain demographic groups

Complaints that drivers have not accepted ride requests from passengers in certain demographic groups has led some ridesharing companies to hide passenger identities until the ride request is accepted by the driver. A 2018 study in Washington, D.C. found that drivers cancelled ride requests from African Americans and LGBT and straight ally passengers (indicated by a rainbow flag) more often, but cancelled at the same rate for women and men. The higher cancellation rate for African American passengers was somewhat attenuated at peak times, when financial incentives were higher.[52][53]

Traffic congestion

Studies have shown that especially in cities where it competes with public transport, ridesharing contributes to traffic congestion, reduces public transport use, and has no substantial impact on vehicle ownership and increases automobile dependency.[54][55][56][57]

Dead mileage specifically causes unnecessary carbon emissions and traffic congestion.[58] A study published in September 2019 found that taxis had lower rider waiting time and vehicle empty driving time, and thus contribute less to congestion and pollution in downtown areas.[59] However, a 2018 report noted that ridesharing complements public transit.[60] A study published in July 2018 found that Uber and Lyft are creating more traffic and congestion.[61][62][63] A study published in March 2016 found that in Los Angeles and Seattle the passenger occupancy for Uber services is higher than that of taxi services, and concluded that Uber rides reduce congestion on the premise that they replace taxi rides.[64] Studies citing data from 2010 to 2019 found that Uber rides are made in addition to taxi rides, and replace walking, bike rides, and bus rides, in addition to the Uber vehicles having a low average occupancy rate, all of which increases congestion. This increase in congestion has led some cities to levy taxes on rides taken with ridesharing companies.[65]

A study published in July 2017 indicated that the increase in traffic caused by Uber generates collective costs in lost time in congestion, increased pollution, and increased accident risks that can exceed the economy and revenue generated by the service, indicating that, in certain conditions, Uber might have a social cost that is greater than its benefits.[66]

See also

References

  1. ↑ Geron, Tomio (September 9, 2013). "California Becomes First State To Regulate Ridesharing Services [Lyft], Sidecar, UberX". Forbes. Archived from the original on August 28, 2020.
  2. ↑ Chan, Nelson D.; Shaheen, Susan A. (November 4, 2011). "Ridesharing in North America: Past, Present, and Future" (PDF). University of California, Berkeley. Archived (PDF) from the original on February 4, 2014.
  3. ↑ Scott, Alec (November 19, 2015). "Co-founding Uber made Calgary-born Garrett Camp a billionaire". Canadian Business. Archived from the original on October 21, 2020.
  4. ↑ Shontell, Alyson (January 11, 2014). "All Hail the Uber Man! How Sharp-Elbowed Salesman Travis Kalanick Became Silicon Valley's Newest Star". Business Insider. Archived from the original on November 12, 2020. Retrieved October 24, 2021.
  5. ↑ "Yandex Launches Taxi Search Service" (Press release). Yandex. October 26, 2011.
  6. ↑ Said, Carolyn (December 29, 2015). "Ride-sharing pioneer Sidecar to shut down ride, delivery service". San Francisco Chronicle. Archived from the original on June 8, 2020.
  7. ↑ Farr, Christina (May 23, 2013). "Lyft team gets $60M more; now it must prove ride-sharing can go global". VentureBeat. Archived from the original on July 27, 2017.
  8. ↑ "Didi Kuaidi". Tech in Asia. September 8, 2015. Archived from the original on September 8, 2015.
  9. ↑ Bashir, Omer (February 15, 2016). "Uber-clone vows safe, affordable ride. Should you Careem around Karachi, Lahore?". Dawn.com. Archived from the original on August 9, 2020.
  10. ↑ McKeever, Vicky. "How a college dropout became Europe's youngest founder of a billion-dollar company". CNBC. Archived from the original on November 26, 2022.
  11. ↑ Dillet, Romain (February 22, 2019). "Daimler and BMW invest $1.1 billion in urban mobility services". TechCrunch.
  12. ↑ Gaskell, Adi (January 26, 2017). "Study Explores The Impact Of Uber On The Taxi Industry". Forbes. Archived from the original on April 19, 2022.
  13. ↑ Cramer, Judd; Krueger, Alan B. (March 2016). "Disruptive Change in the Taxi Business: The Case of Uber". Working Paper Series. doi:10.3386/w22083. Archived from the original on April 23, 2022. {{cite journal}}: Cite journal requires |journal= (help)
  14. 1 2 Freed, Benjamin (June 30, 2015). "Why You Shouldn't Call Uber and Lyft "Ride-Sharing"". Washingtonian. Archived from the original on December 17, 2018. Retrieved December 17, 2018.
  15. ↑ Warzel, Charlie (January 8, 2015). "Let's All Join The AP Stylebook In Killing The Term 'Ride-Sharing'". BuzzFeed. Archived from the original on November 18, 2018. Retrieved December 16, 2018.
  16. ↑ "Ride-Hailing vs. Ride-Sharing: The Difference Explained". Via Transportation. June 7, 2021.
  17. ↑ Ghosh, Palash (October 1, 2018). "Taxi medallion losses drive another credit union out of business". American Banker.
  18. ↑ Fitzsimmons, Emma G. (December 2, 2018). "Why Are Taxi Drivers in New York Killing Themselves?". The New York Times.
  19. ↑ Siemaszko, Corky (June 7, 2018). "In the shadow of Uber's rise, taxi driver suicides leave cabbies shaken". NBC News.
  20. ↑ "Anoush Cab, Inc. v. Uber Technologies, Inc., No. 19-2001 (1st Cir. 2021)". Justia. 2021.
  21. ↑ Dickey, Megan Rose (November 2, 2016). "San Francisco taxi company sues Uber for "predatory pricing tactics"". TechCrunch.
  22. ↑ Leonard, Mike (December 13, 2021). "Uber Resolves San Francisco Cab Company's Predatory Pricing Suit". Bloomberg Law.
  23. ↑ "Uber class action: taxi and hire-car drivers join lawsuit against company". The Guardian. Australian Associated Press. May 3, 2019. Archived from the original on March 30, 2022.
  24. ↑ Xu, Vicky Xiuzhong (May 3, 2019). "Australian Taxi Drivers Sue Uber Over Lost Wages in Class-Action Lawsuit". The New York Times. ISSN 0362-4331. Archived from the original on March 30, 2022.
  25. ↑ "Uber sued by thousands of Australian taxi drivers in class action". CNBC. Reuters. May 2, 2019.
  26. ↑ "Uber class action". Maurice Blackburn.
  27. ↑ Sainato, Michael (August 27, 2021). "'I don't like being treated like crap': gig workers aim to retool a system they say is rigged". The Guardian. Archived from the original on October 31, 2021.
  28. ↑ Thompson, Rachel (February 19, 2021). "Uber loses its final appeal in UK Supreme Court in landmark ruling". Mashable. Archived from the original on February 19, 2021.
  29. ↑ Korosec, Kirsten; Lomas, Natasha (March 17, 2021). "Uber says it will treat UK drivers as workers in wake of Supreme Court ruling". TechCrunch. Archived from the original on April 8, 2021.
  30. ↑ "Swiss authorities say Uber drivers should be treated as 'employees'". Swissinfo. March 19, 2018. Archived from the original on October 11, 2020.
  31. ↑ "Uber has to pay New Jersey nearly $650 million in employment taxes". Engadget. November 14, 2019. Archived from the original on January 16, 2021.
  32. ↑ Lomas, Natasha (September 13, 2021). "Dutch court finds Uber drivers are employees". TechCrunch. Archived from the original on October 31, 2021.
  33. ↑ Keane, Jonathan (September 13, 2021). "Uber Hit By Dutch Ruling That Deems Drivers Employees". Forbes. Archived from the original on October 31, 2021.
  34. ↑ Luna, Taryn (November 4, 2020). "California voters approve Prop. 22, allowing Uber and Lyft drivers to remain independent contractors". Los Angeles Times. Archived from the original on January 4, 2021.
  35. ↑ HILTZIK, MICHAEL (September 8, 2020). "Column: Uber and Lyft just made their campaign to keep exploiting workers the costliest in history". Los Angeles Times. Archived from the original on November 4, 2020.
  36. ↑ "Late Contribution Report". Secretary of State of California. Archived from the original on September 12, 2020.
  37. ↑ Ongweso Jr., Edward (January 21, 2021). "New Study Finds Chicago Uber and Lyft Drivers Are Paid Below Minimum Wage". Vice. Archived from the original on October 30, 2021.
  38. ↑ Hook, Leslie; Solomon, Erika; Ram, Aliya (December 19, 2017). "Beirut killing reignites concerns about Uber safety". Financial Times. Archived from the original on November 9, 2020. Retrieved August 15, 2020.
  39. ↑ Healy, Jack (April 4, 2019). "They Thought It Was Their Uber. But the Driver Was a Predator". The New York Times. Archived from the original on December 21, 2020. Retrieved August 15, 2020.
  40. ↑ Holmes, Aaron (October 25, 2019). "More than 30 women are suing Lyft, saying the company didn't do enough to protect them from sexual assault and kidnapping". Business Insider. Archived from the original on August 3, 2020. Retrieved August 15, 2020.
  41. ↑ Kerr, Dara (October 24, 2019). "Lyft is fostering a sexual assault 'epidemic,' victims say". CNET. Archived from the original on November 12, 2020. Retrieved August 15, 2020.
  42. ↑ Yurieff, Kaya (November 20, 2017). "Uber fined $8.9 million in Colorado for problematic background checks". CNN. Archived from the original on November 11, 2020. Retrieved August 15, 2020.
  43. ↑ "Lyft fined after hiring driver with felony convictions". KKTV. January 13, 2018. Archived from the original on October 26, 2020. Retrieved August 15, 2020.
  44. ↑ Spielman, Fran (February 6, 2020). "Aldermen crack down on ride-hailing safety". Chicago Sun Times. Archived from the original on March 11, 2020. Retrieved August 15, 2020.
  45. ↑ Jacks, Timna (January 11, 2019). "Uber drivers complain they are forced to break the law to do their job.So that means that the drivers put the passenger in danger to which is against the law". Sydney Morning Herald. Archived from the original on November 8, 2020. Retrieved January 13, 2019.
  46. ↑ Annear, Steve (March 1, 2019). "'Fed up' cyclists send letter to Uber, Lyft asking drivers to stop obstructing bike lanes". The Boston Globe. Archived from the original on January 14, 2021. Retrieved January 12, 2021.
  47. ↑ Fitzsimmons, Emma G. (March 10, 2020). "More Pedestrians and Cyclists are Dying in N.Y.C. Drivers are Often to Blame". The New York Times. Archived from the original on December 24, 2020. Retrieved January 12, 2021.
  48. ↑ Lipson, Vivian (August 5, 2019). "It's Not Your Imagination: Uber and Lyft Drivers Almost Always Park in Bike Lanes". Streetsblog. Archived from the original on January 14, 2021. Retrieved January 12, 2021.
  49. ↑ "Gill et al v. Uber Technologies, Inc. et al". PacerMonitor. Archived from the original on February 27, 2023. Retrieved February 27, 2023.
  50. ↑ Said, Carolyn (February 27, 2018). "Uber does not have enough wheelchair-accessible vehicles, new lawsuit says". San Francisco Chronicle. Archived from the original on November 9, 2020. Retrieved April 25, 2018.
  51. ↑ Sonnemaker, Tyler (April 2, 2021). "Uber ordered to pay $1.1 million to blind passenger who was denied rides 14 separate times". Business Insider.
  52. ↑ Mejia, Jorge; Parker, Chris (January 2021). "When Transparency Fails: Bias and Financial Incentives in Ridesharing Platforms" (PDF). Management Science. 67 (1): 166–184. doi:10.1287/mnsc.2019.3525. S2CID 218928567.
  53. ↑ BARMANN, JAY C. (September 27, 2019). "Study Finds That Black and LGBTQ People Still Have Rideshare Drivers Cancel On Them More Often". Gothamist. Archived from the original on October 31, 2021. Retrieved October 31, 2021.
  54. ↑ Wolfe, Sean (July 27, 2018). "Uber and Lyft are creating more traffic and congestion instead of reducing it, according to a new report". Business Insider. Archived from the original on October 19, 2020. Retrieved December 17, 2018.
  55. ↑ Transport for London (2019). "Travel in London Report 12". p. 116. Archived from the original on October 27, 2021. Retrieved October 30, 2021.
  56. ↑ Andrew J. Hawkins (August 6, 2019). "Uber and Lyft finally admit they're making traffic congestion worse in cities". The Verge. Archived from the original on October 27, 2021. Retrieved October 30, 2021.
  57. ↑ Eliot Brown (February 15, 2020). "The Ride-Hail Utopia That Got Stuck in Traffic". The Wall Street Journal. Archived from the original on October 26, 2021. Retrieved October 30, 2021.
  58. ↑ Song, Victoria (April 26, 2021). "Rideshares Are Increasing Traffic Jams and Making Them Longer, Study Finds". Gizmodo. Archived from the original on October 30, 2021. Retrieved October 30, 2021.
  59. ↑ Zhang, Ruda; Ghanem, Roger (September 27, 2019). "Demand, Supply, and Performance of Street-Hail Taxi". IEEE Transactions on Intelligent Transportation Systems. 21 (10): 4123–4132. arXiv:1909.12861. Bibcode:2019arXiv190912861Z. doi:10.1109/TITS.2019.2938762. S2CID 203593159.
  60. ↑ Hall, Jonathan D.; Palsson, Craig; Price, Joseph (November 1, 2018). "Is Uber a substitute or complement for public transit?" (PDF). Journal of Urban Economics. 108: 36–50. doi:10.1016/j.jue.2018.09.003. ISSN 0094-1190. S2CID 31480082. Archived (PDF) from the original on April 30, 2019. Retrieved August 15, 2020.
  61. ↑ Wolfe, Sean (July 27, 2018), Uber and Lyft are creating more traffic and congestion instead of reducing it, according to a new report, Business Insider, archived from the original on October 19, 2020, retrieved December 17, 2018
  62. ↑ Transport for London (2019), Travel in London Report 12, p. 116, archived from the original on October 27, 2021, retrieved October 30, 2021
  63. ↑ Hawkins, Andrew J. (August 6, 2019), Uber and Lyft finally admit they're making traffic congestion worse in cities, The Verge, archived from the original on October 27, 2021, retrieved October 30, 2021
  64. ↑ Cramer, Judd (March 2016), "Disruptive Change in the Taxi Business: The Case of Uber", National Bureau of Economic Research, Working Paper Series 22083, doi:10.3386/w22083
  65. ↑ Eliot Brown (February 15, 2020), The Ride-Hail Utopia That Got Stuck in Traffic, Wall Street Journal, archived from the original on October 26, 2021, retrieved October 30, 2021
  66. ↑ Pinheiro, Rafael Lemieszek (2017). "Intelligence is Open: Smart City versus Open City". PlaNext – Next Generation Planning. 4: 8–26. doi:10.24306/plnxt.2017.04.002. Archived from the original on May 21, 2022. Retrieved May 5, 2022.
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